Important Task, Service Tax

[Nikhil Kumar]

Dear Members,

                             I have a question to all of u, that i am working with biomedical company,and it is providing rental services to hospitality equipments and genrate the bill with vat /cst in delhi , it is right or wrong tell me ,

if wrong so how much I portionate vqat & service tax In a same bill .

Posts / Replies

[Pradeep Khatri]

It will depend on the aspect of effective control.  If effective control and possession of the rented equipment lies with you then service tax will be applicable otherwise this transaction will fall under the category of Right to Use, on which VAT/CST will be applicable.